Food inflation hits rain-weary Pakistanis hard

Food inflation hits rain-weary Pakistanis hard
Shoppers seen buying groceries in Joria Bazaar in Karachi on June 1, 2016

Food inflation hits rain-weary Pakistanis hard

Shoppers seen buying groceries in Joria Bazaar in Karachi on June 1, 2016

Weekly inflation rose 3.35 percent week-on-week and 42.31 percent year-on-year, over a decade high, dashing hopes of the masses about achieving financial stability in the near-term.

Karachi: Weekly inflation rose 3.35% week-on-week and 42.31% year-on-year, supported by higher food, gas and electricity prices. Near future.

Data released by the Pakistan Bureau of Statistics (PBS) on Friday showed the rise in the Sensitive Price Index (SPI) was mainly due to rising prices of tomatoes (20.28%), chicken (7.57%) and initial electricity. It was something.

Quarters (6.83 percent), gasoline (2.96 percent), onions (2.30 percent), milk powder (2.03 percent), tobacco (1.69 percent), eggs (1, 63 percent), legumes (1.42 percent), potatoes (1.07 percent). The massive 42.31% increase in the
annualized SPI has been criticized by opponents. PTI economic and financial spokesman Muzamir Aslam tweeted that the SPI exceeded 40% for the first time in Pakistan’s history. Inflation rose 42.31 percent in the past week in Pakistan compared to the same period last year, he added, according to the statistics office.

SPI contains 51 key items collected from 50 markets in 17 cities nationwide. This week, out of 51 items, 25 items (49.01%) rose in price, 11 items (21.57%) fell, and 15 items (29.42%) stabilized.
Ismail Iqbal Securities head of research Fahad Rauf said his SPI rose 3.35%.

Electricity rate adjustments may continue due to planned base rate increases and expected fuel price adjustments. “We expect inflation to peak at around 27% in August 2022 due to the low base effect and energy price adjustments,” he added.

Inflation is accelerating at a faster pace, with significant price increases across the country, fueled by devastating rainfall in the lower Punjab, Balochistan and Sindh provinces, and the coalition government has threatened to overwhelm this threat. is difficult to control. Inflation was one of the reasons former Prime Minister Imran Khan had to face a vote of no confidence.

Former Federal Minister of Finance and Revenue Shaukat Tallinn said: At the end of March his SPI was 17%, now he is over 42%. The people of Pakistan are paying a very high price for this failed experiment. ”

Topin Securities said in a report that the rise in the SPI was “a decade-plus high.” The significant rise in SPI is impacting all spending groups. Divided into 5 quintiles by PBS. For groups up to Rs17,732. Rs17,733-22,888; Rs22,889-29,517; Rs29,518-44,175; Rs44,175 and above. Year-on-year SPI increased by 34.24, 40.43, 39.37, 39.54 and 43.30% respectively. On a wow basis, the group changes were 1.8, 2.25, 3.03, 3.19 and 3.94% respectively. Different products are assigned different weights in the SPI basket.

Commodities with the highest weights in the bottom quintile include milk (17.5449%), electricity (8.3627%), flour (6.1372%), sugar (5.1148%), firewood (5.0183%), long fiber (4.2221%), Contains vegetables. Ghee (3.2833%).

Among these commodities, prices of electricity, flour and long cloth rose, while prices of sugar, firewood, vegetable ghee and bulk milk fell. However, prices of all commodities rose year-on-year, except for refined sugar, which fell 16.55%.

Credit/Source : THENEWSPK